President Rajoelina Firmly Asserts No Privatization of Jirama in 2025
Faced with growing concerns in Madagascar’s energy sector, the stability of the national electricity company, Jirama, remains a sensitive issue. For several years, discussions surrounding a possible privatization or the entry of private capital have fueled public debate. However, in 2025, President Andry Rajoelina firmly reaffirmed his position: Jirama will not be privatized or dismantled. During a recent meeting with union representatives, he stated that as long as he is in power, this strategic entity for Madagascar’s public service will remain entirely under state control. Fears of a transfer of ownership or a change in status have been exacerbated by the company’s recent transition to a public limited company (Société Anonyme), a status often associated with openness to private participation. However, the Head of State insisted on preserving public ownership, stating that “Jirama will not be privatized” as long as he holds the presidency. This statement is part of a clear desire to reassure the population and sector stakeholders in the face of speculation and uncertainty surrounding the ongoing structural reform.Discover the challenges and impacts of privatization on the economy and the public sector. Analyses, case studies, and in-depth reflections on this management strategy and its consequences for citizens.A reaction to the controversy surrounding the change of status
Discover the privatization process, its advantages, disadvantages, and its impact on the economy. Explore how the transition of public assets to the private sector can influence resource management and service quality.
The energy and financial challenges of maintaining Jirama as a public company
Discover how privatization is transforming the public and private sectors by improving efficiency, reducing costs, and fostering innovation. An analysis of the economic and social issues associated with this complex process.
A summary table of Jirama’s financial and technical challenges
Situation in 2025
| Potential consequences | Technical losses | 29% |
|---|---|---|
| Increase in production costs | Annual deficit | 144 billion ariary |
| Medium-term bankruptcy risk | Material obsolescence | Generators & Outdated Networks |
| Low Distribution Reliability | Current Projects | Investments in Solar & Smart Meters |
| Gradual Service Improvement | Shareholding | 100% State-Owned |
| Decision-Making Independence Preserved | Initiatives and Plans to Strengthen the Public Company Jirama by 2025 | In a context where energy is a crucial issue for Madagascar’s development, the government has launched several initiatives aimed at modernizing Jirama. Among these, the diversification of energy sources has been prioritized, with investments in solar and biomass. These initiatives aim to reduce dependence on diesel generators, which are responsible for a significant portion of financial and technical losses. Infrastructure modernization is also a key objective to ensure more reliable and secure electricity distribution throughout the country. The review of rehabilitation projects, particularly the replacement of obsolete equipment, remains a priority. Furthermore, the plan includes the installation of smart meters that allow for more precise management of consumption, thus avoiding unevenly distributed wage burdens. The government’s commitment to preserving the public service desired by the majority of Malagasy people implies that any reform approach must remain focused on stability, without opening up to privatization. The participation of local stakeholders, transparency in management, and compliance with international commitments are fundamental to the realization of these ambitious projects. |
The challenges of fully modernizing JIRAMA
Despite the reform momentum and planned investments, several obstacles are holding back the company’s modernization. The dilapidated grid, the lack of sufficient funding, and resistance to change among some local stakeholders complicate implementation. The distrust expressed by employees following the recent change in status illustrates these reservations, which could slow progress toward improved electricity service. Human resource management, particularly overpayments and unequal distribution, must also be reviewed to avoid large-scale social conflicts. The integration of new technologies, such as smart meters, requires technical adaptation and ongoing training. The local press regularly reports these difficulties, emphasizing the need for constant and constructive dialogue between the government and union representatives to ensure the sector’s stability. Ultimately, the modernization of JIRAMA by 2025 relies on an integrated strategy, combining investment, managerial reform, and transparent governance. Any slippage in any of these areas could compromise the success of the overall project. The social and political consequences of maintaining the public company Jirama
Keeping Jirama under state control in 2025 is not only an energy strategy, but also a political approach, emphasizing respect for public service and national sovereignty. The company remains a symbol of the government’s commitment to access to energy for all, particularly in rural areas where economic development closely depends on it. The fear of privatization nevertheless sparks a social revolt, fueled by the demands of unions and populations. Highlighting the need to preserve jobs, ensure fair pricing, and control resource management, the stability of the public company becomes a question of survival for President Rajoelina. Several social movements have been observed, including strikes or marches demanding immediate improvements to electrical service. The political issues crystallize around the government’s ability to maintain a balance between responsible management, transparency and social commitment, without giving in to pressure from private or foreign actors. Communication around this firm position constitutes a crucial step in strengthening citizen confidence in a national energy vision.
Social energy management at the heart of political stability
Maintaining the public nature of JIRAMA in 2025 appears to be a determined response to popular will and social demands. Managing social conflicts, particularly those related to working conditions and tariffs, plays a strategic role in the country’s political stability. Deactivating the threat of privatization is seen as a victory for the unions and reassurance that the government intends to prioritize an inclusive management model. Transparency in communication and the participation of local stakeholders in defining energy policies reinforce the legitimacy of this stance. Furthermore, dialogue mechanisms have been established to ensure collective mobilization around a common project, thus avoiding the emergence of destabilizing opposition to the government. The sustainability of the public company therefore constitutes a guarantee of social cohesion and national sovereignty, fundamental elements for overcoming economic or social crises in 2025.
Frequently asked questions about the public management of JIRAMA in 2025
Is the privatization of JIRAMA still a possibility in Madagascar? No, according to official statements by President Andry Rajoelina, the company will remain entirely under public control as long as he is in power.
What are the main projects to improve the electricity grid?
The modernization involves the renewal of equipment, the installation of smart meters, and the development of renewable energies such as solar power.
- What risks will Madagascar’s energy sector have to overcome in 2025? The aging of infrastructure, the management of technical losses, financial deficits, and resistance to change in human resource management.
- How is the government ensuring social stability in the face of concerns surrounding Jirama? By maintaining state control over the company, ensuring ongoing social dialogue, and strengthening transparency in management.
- What does the reform of JIRAMA’s status mean for Madagascar? It ensures greater compliance with international standards while maintaining public control and avoiding privatization, thereby benefiting national sovereignty.
